Sunday, October 16, 2022, 5PM: First, apologies to Spike Line friends, as our data feed has stopped working again. It’s frustrating, but for our analysis, we still have NYMEX data, UGA, gas price heat maps, and a couple other tricks to get a read on current conditions.
At the beginning of the month, gas prices shot up in the Midwest due to refinery woes. Like any good market, that started to correct, with gasoline flowing from elsewhere to stabilize supply, and retail prices started to fall. But, with gas prices, prices jump up fast and drop slowly, and that is what is happening again. I did see $3.99 on the Indiana/Michigan border a few days ago, and competition has brought prices down near $4 in Allendale, but we still have enough stations in west Michigan in the $4.40’s to maintain a feeling of aggravation.
NYMEX wholesale prices on the east coast actually correspond to retail prices around $3.50, and that is what you see on the heat map. So, my advice in the Midwest is to look for $4 and below, and avoid those $4.40’s until they get a clue. -EA